AN An Empirical Study on Regional Government-Owned Bank and Local Government Fund in Indonesia

• Autores: Sigit Handoyo, Aditya Pandu Wicaksono, Wirawan Hardinto, Dina Fauzia
• Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 8, Nº. 3, 2023 (Ejemplar dedicado a: Continuous publication; e01425)
• Idioma: inglés
• DOI: 10.26668/businessreview/2023.v8i3.660
• Enlaces
  • Texto completo (pdf)
• Resumen

  • Purpose: The aim of this study is to examine which factors give impact on BPD performance as Regional Development Bank that still relies on Local Government Fund.

      Theoretical framework:  Research on BPD performance so far without looking at special conditions where the bank's performance is experiencing very good performance and without mentioning the dependence of BPD on local government funds, so this research was conducted   Design/methodology/approach: The study collects data from 25 Indonesian Regional Development Banks (BPD) in period 2013-2017. Data analysis technique in this research uses multilinear regression.

      Findings: The results of this research show that Growth of Third Party Fund (GTPF) has no effect on ROA. CAR and LDR have a positive and significant effect on ROA. Meanwhile, NPL and QAP have a negative and significant effect on ROA.

      Research, Practical & Social implications: The implication of this study indicates that management of bank needs to conduct a better strategy to maximize the profit from third party funds. Also, local government should consider other private bank as an alternative to deposit their fund. So that, Regional Government-owned bank may compete to other banks and it becomes independent.

      Originality/value:  This study highlights the performance of BPD banks specifically in periods where the bank's performance is still very dependent on local government funds.

• Referencias bibliográficas
  • Ahmad, G. N. (2015). Determinan profitabilitas bank: Studi kasus pada Bank Pembangunan Daerah. Jurnal Keuangan Dan Perbankan, 19(3), 431–438.
  • Aini, N. (2013). Pengaruh CAR, NIM, LDR, BOPO dan kualitas aktiva produktif terhadap perubahan laba (Studi empiris pada perusahaan perbankan...
  • Akter, R., & Roy, J. K. (2017). The impacts of non-Performing loan on profitability: An empirical study on banking sector of Dhaka Stock...
  • Buchory, H. A. (2014). Analysis of the effect of capital, credit risk and profitability to implementation banking intermediation function...
  • Dendawijaya, L. (2009). Manajemen perpajakan. Jakarta: Ghalia Indonesia.
  • Gul, S., Irshad, F., & Zaman, K. (2011). Factors affecting bank profitability in Pakistan. The Romanian Economic Journal, 14(39), 61–87.
  • Harun, U. (2016). Pengaruh ratio-ratio keuangan CAR, LDR, NIM, BOPO, NPL Terhadap ROA. Jurnal Riset Bisnis Dan Manajemen, 4(1), 67–82.
  • Heffernan, S., & Fu, M. (2008). The determinants of bank performance in China. https://doi.org/10.2139/ssrn.1247713
  • Hutagalung, E. N., Djumahir, & Ratnawati, K. (2013). Analisa rasio keuangan terhadap kinerja bank umum di Indonesia. Jurnal Aplikasi Manajemen,...
  • Islam, K. M. A., & Bhuiyan, A. B. (2021). Determinants of the effectiveness of internal shariah audit: Evidence from islamic banks in...
  • Kadioglu, E., Telceken, N., & Ocal, N. (2017). Effect of the asset quality on the bank profitability. International Journal of Economics...
  • Kasmir. (2009). Analisis laporan keuangan (7th editio). Jakarta: Grafindo Persada.
  • Kusmana, A., & Sumilir. (2019). Banking performance analysis. International Journal of Multicultural and Multireligious Understanding,...
  • Morris, R. D. (2012). Signaling, agency theory, accounting policy choice. Accounting and Business Research, 18, 47–56.
  • Murdiyanto, A. (2018). Faktor-faktor yang berpengaruh terhadap ROA (Studi pada bank umum syariah di Indonesia periode Tahun 2012-2017). Proceeding...
  • Muya, T. W., & Gathogo, G. (2016). Effect of working capital management on the profitability of manufacturing firms in Nakuru Town, Kenya....
  • Nguyen, T. N. L., & Nguyen, V. C. (2020). The determinants of profitability in listed enterprises: A study from Vietnamese stock exchange....
  • Nurhasanah. (2014). Pengaruh assets growth dan dana pihak ketiga terhadap profitabilitas perbankan yang listing di Bursa Efek Indonesia (BEI)...
  • Ogbadu, E. E. (2009). Profitability through effective management of materials. Journal of Economics and International Finance, 1(4), 99–105....
  • Ombaba, M. (2013). Assessing the factors contributing to non-performance loans in Kenyan banks. European Journal of Business and Management,...
  • Ongore, V. O., & Kusa, G. B. (2013). Determinants of financial performance of commercial banks in Kenya. International Journal of Economics...
  • Otoritas Jasa Keuangan (OJK). (2017). Laporan tahunan OJK 2017. Retrieved November 1, 2019, from https://www.ojk.go.id/id/data-dan-statistik/laporan-tahunan/Pages/Laporan-Tahunan-OJK-2017.aspx.
  • Petria, N., Capraru, B., & Ihnatov, I. (2015). Determinants of banks’ profitability: Evidence from EU 27 banking systems. Procedia Economics...
  • Pradana, T., Diana, I. N., & Rofiq, A. (2022). The effect of third party funds on the profitability of islamic commercial banks in Indonesia....
  • Puteri, N. K. A. F. (2021). Do liquidity, asset quality, firm size, and efficiency affect bank profitability? Evidence from Indonesia Stock...
  • Salike, N., & Ao, B. (2018). Determinants of bank’s profitability: Role of poor asset quality in Asia. China Finance Review International,...
  • Satyagraha, F. T., Purwono, R., & Sari, D. W. (2022). An analysis of the performance of Regional Development Banks (RDB) in Indonesia:...
  • Sehany, D. M., & Nurhidayati, M. (2022). Pengaruh dana pihak ketiga dan inflasi terhadap profitabilitas pada bank umum syariah BUMN pada...
  • Serwadda, I. (2018). Determinants of commercial banks’ profitability: Evidence from Hungary. Acta Universitatis Agriculturae et Silviculturae...
  • Setiawan, C., & Kodratillah, O. I. (2017). Examining banks profitability and banks efficiency of islamic commercial banks in Indonesia....
  • Silaban, J., Paminto, A., & Irwansyah. (2022). Analisis pengaruh dana pihak ketiga, kredit, biaya operasional pendapatan operasional,...
  • Soares, P. dan, & Yunanto, M. (2018). The effect of NPL, CAR, LDR, OER and NIM to banking return on asset. International Journal of Economics,...
  • Sudarwanto, Y. (2014). Analisis pengaruh pertumbuhan dana pihak ketiga, capital adequacy ratio, net interest margin, dan non performing loan...
  • Sudiyatno, B., & Suroso. (2010). Analisis Pengaruh Dana Pihak Ketiga, BOPO, CAR, dan LDR terhadap Kinerja Keuangan pada sektor perbankan...
  • Suhardi, & Altin, D. (2013). Analisis kinerja keuangan bank BPR Konvensional di Indonesia periode 2009 sampai 2012. Pekbis Jurnal, 5(2),...
  • Syachfuddin, L. A., & Rosyidi, S. (2017). Pengaruh faktor makro ekonomi, dana pihak ketiga dan pangsa pembiayaan terhadap profitabilitas...
  • Syahyunan. (2002). Analisis kualitas aktiva produktif sebagai salah satu alat ukur kesehatan bank. Retrieved from https://adoc.pub/analisis-kualitas-aktiva-produktif-sebagai-salah-satu-alat-u.html
  • Tabash, M. I., Albugami, M. A., Salim, M., & Akhtar, A. (2019). Service quality dimensions of E-retailing of Islamic banks and its impact...
  • Tangngisalu, J., Hasanuddin, R., Hala, Y., Nurlina, N., & Syahrul, S. (2020). Effect of CAR and NPL on ROA: Empirical study in Indonesia...
  • Tani, V. M. A., Amtiran, P. Y., & Makatita, R. F. (2019). Pengaruh penyaluran kredit dan kredit bermasalah terhadap profitabilitas perbankan...
  • Tariq, W., Usman, M., Mir, H. Z., Aman, I., & Ali, I. (2014). Determinants of commercial banks profitability: Empirical evidence from...
  • Tolangga, F. G., & Ulpah, M. (2019). Asset quality, non-interest income, and bank profitability: Evidence from Indian banks. Proceedings...
  • Trujillo-Ponce, A. (2013). What determines the profitability of banks? Evidence from Spain. Accounting & Finance, 53(2), 561–586.
  • Wulandari, R., & Shofawati, A. (2017). Analisis pengaruh CAR, FDR, NPF, dan pertumbuhan DPK terhadap profitabilitas pada industri bank...
  • Yuan, D., Gazi, M. A. I., Harymawan, I., Dhar, B. K., & Hossain, A. I. (2022). Profitability determining factors of banking sector: Panel...
  • Zaharum, Z., Latif, R. A., Isa, M. A. M., & Hanafi, M. H. (2022). The influence of liquidity management on banks’ profitability. International...